The new Chancellor, John Healey, declined to rule out tax rises in his first Budget as he sought to reassure businesses while stressing tighter Government spending, delivering a speech in Coventry that echoed the fiscal caution of his predecessor, Rachel Reeves. This matters because it comes amid rising borrowing costs, national debt at a 60-year high, and mounting fears among businesses and homeowners about possible wealth taxes, just as Jaguar Land Rover announced plans to cut 4,000 jobs.

Healey pledged "fiscal discipline" and commitment to Labour's fiscal rules, insisting the UK had "huge latent potential" despite the gloom, but was accused by shadow chancellor Andrew Griffith of being "continuity Rachel Reeves" and warned he risked repeating the 1976 IMF bailout secured by his Labour namesake, Denis Healey. Jaguar Land Rover's job losses, part of a voluntary redundancy scheme aiming to save £1.7 billion over two years, come with the Government having already ruled out a bailout, while Healey also faces pressure to reform the pensions triple lock to fund youth unemployment measures ahead of October's Budget.